What is MCSC and what drew you to start a business in the DRC?
Seeing how some of our competitors were already enjoying the opportunities found in Africa, we decided to sell our venture in Belgium and begin anew in the Democratic Republic of Congo. As a result, in 2007, we founded MCSC (Mining Contracting Services Congo), acting as sub-contractors in mining. We own equipment that helps us offer an array of services to our customers, from opencast mining, bulk earthworks, road construction, and plant hire. We do not own any mines, but starting with 2014, we consider ourselves as a mining subcontractor. The power dynamics in Congo has been changing over the past years in that, if at the beginning we were working mostly for Western companies from Australia, the U.S. or Canada, now we are also collaborating with Chinese entities, which own around 80% of the mines in DRC. With the demand of cobalt and copper increasing day by day, Congo will start to play an exponentially important role in the green transition given the unmatched characteristics of its mining sites, both from a size and a deposit richness point of view. Being present here for so many years, we have identified numerous opportunities that await to be further developed, and it is truly exciting to be part of this journey.
What do you perceive as the main challenges when it comes to operating in the DRC?
Congo is in the gold rush phase at the moment, with most players being interested in making a profit in any possible way. As such, there is a highly competitive atmosphere that is complemented by the, sometimes, intricate rules and regulations.
The DRC is welcoming new companies with an assortment of taxes, both old and new, and in order to decipher their role, you need reliable insider information. In the end, all challenges can be solved here, but the waiting times are usually long and this might lead to frustration. The competitors in the mining sector are as tough as they get, everybody being interested in securing their seat at the table.
Lastly, in order to obtain the skilled workforce needed for mining activities, in-house training sessions are a must. However, during all these years that we have been deploying projects here, we found out that with determination and resilience, great things can be achieved in the DRC.
Mining will be essential in the green transition and DRC is one of the top destinations to start a new project. Do you feel more investors, especially from Europe and the U.S., are eager to start their venture here?
After decades of absence, Europe, and specifically Belgium, would like to return to Congo, but they are wary about the hardships they might encounter here. Until the Occident will reconcile this dissonance, we are not to see a massive wave of new investors flooding the country. We know that the West is interested in doing business in a pre-established and safe framework, which is yet to become commonplace in Congo. Nevertheless, not all investors are this rigid, and some are open to taking risks more than others, so, in the years to come, we will probably see more new mining sites owned by European or American companies. With more rules being put into place that force even the quiet opaque China to prove the cleanliness of its cobalt, there is hope that the business environment in Congo will become more enticing for foreign investors.
What makes living and working in the DRC an enjoyable experience?
Challenges aside, Congo offers an affordable talent pool that allows us to hire larger teams at a fraction of the cost we find in other countries. There are plenty of assistance companies that have the know-how to help with the implementation of legal requirements, and social interactions are generally open and pleasant here. However, the quality of life is starting to decline due to poor city administration and management, resulting from overpopulation. Lubumbashi, for example, grew from three million people in 2007 to around seven million people in the present.
